GENERAL SITUATION IN MEXICO
Weekly Review # 63 I July 14, 2021
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MANUFACTURING INDUSTRY AUTOMOTIVE INDUSTRY NOW FACES LOGISTICS CRISIS The automotive industry is facing a second crisis after the COVID-19 pandemic: logistics, which was disrupted by the shortage of ships from East to West since the end of 2020 and has worsened in recent months, where JAC, the Chinese brand, has seen its freight costs soar up to 4 times higher, said Isidoro Massri, general manager of JAC Motors in Mexico. “We have the most expensive freight we have ever had in our history, and following last year’s trend, the destabilization of supply and demand continues,” said the businessman. The price per freight went from 3,000 dollars (average before the pandemic) to 10,000 or 12,000 dollars to import raw material, parts, and final product from the East. He specified that a container from China before the pandemic cost 3,000 dollars. Now they are 3.5 to 4 times the cost, “maybe 9, 10 to 12,000 dollars, depending on the route and the amount of containers and if we have seen containers auctioned. It has been something we had never faced before, as in import and export”. The Chinese automaker achieved record sales last June, with triple-digit growth, and surpassed its best month (December 2020), selling 704 vehicles in Mexico against 272 in the sixth month of 2020. He acknowledged that there had been delays in deliveries of vehicle orders, mainly launches, but there is inventory to continue sales of JAC cars in Mexico affected.
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MANUFACTURING INDUSTRY INDUSTRIAL ACTIVITY IN MEXICO CONTINUES WITH MODEST RECOVERY; MANUFACTURERS PUT ON THE BRAKES
During May 2021, the level of industrial activity in Mexico registered an advance of only 0.1% with respect to the previous month, confirming a slow recovery trend after the important crisis caused by the COVID-19 pandemic. The Monthly Industrial Activity Indicator showed that in the classification by type of activity, manufacturing industries are the ones that continue to show the greatest slowdown in growth. According to Inegi’s seasonally adjusted figures, activity in the manufacturing sector registered a 0.7% drop in comparison to April. This result also shows that, after the recovery, there is a loss of dynamism in this sector.
Despite this, it continues to be the most productive and important sector for Mexican industry in general. On the other hand, construction showed the best dynamism during this period, with a 2.0% increase in activity in just one month. The electricity, gas, and water industry increased by 1.3 percent and mining rebounded 1.0 percent.
In general terms, the restrictions to industrial operations have already been partially lifted, so it is expected that this sector will show better dynamism in the second half of the year.
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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference July 7-13, 2021 THE PULSE OF HEALTH The Secretary of Health, Dr. Jorge Alcocer, mentioned that 40% of the population over 18 years of age had been vaccinated. MAQUILADORA VACCINATION CAMPAIGN IN NORTHERN STATES Lopez Obrador addressed the population of Chihuahua to report that vaccination has already begun in that state. He explained that only the Janssen vaccine can be used at the border due to a lack of supply of doses from Pfizer. He indicated that the commitment is to vaccinate all citizens over 18 years of age who live in the border area to reopen the border as soon as possible. BUSINESS SUPPORT PLANS A journalist questioned the President about the few funds allocated to support micro, small and medium-sized companies with respect to aid provided to large companies. For his part, Obrador called to continue supporting companies and affirmed that about 2,000,000 loans have been granted to companies and that his administration continues to work in this regard. OPENING OF THE BORDER The President pointed out that Chancellor Ebrard is working on reopening the borders to not affect the economic development of the region and the supply chains. Business people and merchants from both countries have sought to facilitate the process, so vaccination has been accelerated in that region.
SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg
MEETING WITH ELECTED GOVERNORS The President reported that with the governor-elect, Samuel Garcia agreed to continue the commitments made with the government of Nuevo Leon, mainly on water supply, and to use the existing train tracks as urban trains and thus support mobility in the area. He commented that the Federal Government will continue to support Nuevo Leon with welfare programs.
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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference July 7-13, 2021
PROFIT-SHARING The Secretary of Labor, Luisa Maria Alcalde, reported on profit-sharing and its relationship with the subcontracting reform. She pointed out that two and a half months after the entry into force of the reform, a thousand workers have left the subcontracting scheme and have been recognized and registered by their employers, which implies that they will have the right to profit-sharing for the first time. CUSTOMS The President mentioned that a decree is about to be published to strengthen the customs system in coordination with the Navy and National Defense Secretariat with the main objective of continuing to fight corruption, smuggling, and drugs. CUBA The President mentioned that his position has already been established and considered that there should be no blockade. He commented that when this matter is discussed in the UN, the majority of the countries represented a vote against the blockade, but that the votes in favor carried a lot of weight, so the majority vote did not proceed. He reiterated the importance of seeking peaceful solutions to conflicts, respect for human rights, and no interventionist bias. He attributed Cuba’s situation, to a great extent, to the blockade.
SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg
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MEASURES TAKEN BY STATES IN MEXICO
BAJA CALIFORNIA The State of Baja California is considered in the low-risk tier or green light, except for the municipality of Mexicali, which is still considered in the medium risk or yellow light. Official reports confirmed a slight increase amount of COVID-19 cases from last week. There are currently 344 active cases with hospital occupancy at 29.59%, with 238 hospital beds available and 246 respirators available for COVID-19 patients. The vaccination plan continues this week, applying Pfizer and Cansino second doses for adults. Baja California’s Health Secretary reported that 72% of the State’s adults population has the complete vaccination scheme.
SONORA The State of Sonora has the vast majority of its municipalities in medium risk tier or yellow light. Only 8 municipalities out of 72 in the high-risk tier or orange light. The Sonora’s Health Secretary informed 1,680 active COVID-19 cases and 213 hospitalized patients, of which only 42 patients are in critical conditions using respirators. In the past 24 hours, 2 patients lost its life, and 124 new confirmed cases were reported. The vaccine plan continues this week in different municipalities by applying the second dose of Pfizer to adults between 50 and 59 years old.
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MEASURES TAKEN BY STATES IN MEXICO
COAHUILA The Ministry of Health in Coahuila reported that from July 20 to 24, there will be a special vaccination campaign against COVID-19 for the entire population over 18 years of age in the municipalities of the Northern Region. They specified that it will be the Pfizer vaccine that will be applied. TAMAULIPAS The Secretary of Health of the Government of Tamaulipas modified the epidemic traffic light of COVID-19 risk, advancing Altamira to orange, which is a high risk, and leaving Tampico and Madero at maximum risk red. NUEVO LEON The government of Nuevo Leon reported that, after an increase in positive cases for COVID-19 and hospitalizations, the allowed capacity is reduced from 70 to 50 percent. In addition, it was announced that pregnant women return as a vulnerable group, so they are not allowed to access any business or establishment.
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MEASURES TAKEN BY STATES IN MEXICO
JALISCO Young people are the most affected by the third wave of COVID-19, according to the state government. Confirmed cases of people aged 20 to 24 increased from 7% to 14%, and those aged 25 to 29 increased from 12% to 18%. However, the Governor pointed out at a press conference that those hospitalized continue to be mainly older adults. They account for 4 out of every 10 hospitalized. The Governor of Jalisco informed that the proposal for changes in the vaccination program that he sent to President Andres Manuel Lopez Obrador consists of prioritizing the immunization of people over 18 years of age by three groups: health status, geography, and work activity.
AGUASCALIENTES Aguascalientes Ministry of Health reported ten cases, zero deaths, and zero suspected cases of COVID-19 on July 13. Thus, Aguascalientes reports 23,291 cases of COVID-19 and 3,298 cumulative deaths since the beginning of the pandemic. More than 19,857 patients have already recovered from the viral disease. The case fatality rate stands at 14.2%, the fifth-highest in the country. There are 100 active patients. The municipality of Aguascalientes has 19,062 cases, followed by Jesus Maria with 1,077; Rincon de Romos with 619; Pabellon de Arteaga with 537; San Francisco de los Romo, 317; Asientos, 313; Calvillo, 285; Tepezala, 253; Cosio, 212; San Jose de Gracia, 132; and El Llano, 127. The IRAG network has 33 hospitalized patients, of which 26 are in critical condition, and seven are intubated.
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MEASURES TAKEN BY STATES IN MEXICO
GUANAJUATO The Minister of Health of Guanajuato, Daniel Alberto Diaz Martinez, stated a slight increase of COVID-19 cases. These are mild cases that do not represent an increase in hospital occupancy. He acknowledged that there is still a significant percentage of the population that needs to be vaccinated. He reiterated that the goal is to vaccinate 80% of each population group, and Guanajuato is close to finishing the first applications in the 40 to 49 years age group. Regarding the first case of the delta variant, the Secretary mentioned that it is a variant that is more aggressive, especially in the younger population, and the possibility of contagion is much higher.
QUERETARO Considering the increase in COVID-19 cases, members of the state’s Technical Health Committee warned of the risk of the state resuming restrictions on opening and mobility in the state. Although Scenario A -state regulation parameterwill be in effect until further notice, they urged the population to comply with the sanitary measures and prevent the state from reverting to the limitations of Scenario B. The population was also asked to cancel meetings, parties, vacation trips, and unnecessary outings. And in case of organizing meetings, it is recommended to do them outdoors and with people who apply the sanitary protocols, reiterating the use of masks when conversing. During the session, they also reiterated that the COVID-19 pandemic is still active. They asked citizens to be aware of the state’s vaccination schedule and identify the dates and locations that apply to each municipality. They emphasized that the vaccine application does not prevent contracting the virus, so they urged the population not to lower their guard.
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MEASURES TAKEN BY STATES IN MEXICO
STATE OF MEXICO The number of positive cases of COVID-19 in the State of Mexico has increased 20% in the last week, but until this Monday, a third wave of infections was not foreseen, said the Secretary of Health, Francisco Fernandez Clamont. However, this week is when the color of the epidemiological traffic light will be decided for the next 15 days.
CDMX The Mexico City government has ruled out a new shutdown of economic activities in the event of a possible third wave of COVID-19 infections, hospitalizations, and deaths, which, as reported on July 9, could arrive sometime in August with an estimated maximum peak of 3,500 occupied hospital beds.
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VACCINATION PROGRESS
As of July 12, 50,817,979 doses of the COVID-19 vaccine have been applied in all of Mexico since December 24, 20,766,146 have the complete scheme, and 35,378,414 have at least one dose. The states with the greatest progress in immunization are Baja California, Mexico City, Baja California Sur, Quintana Roo, Yucatan, and Zacatecas, with percentages ranging from 79 to 43 percent.
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TOWARDS THE “NEW NORMAL”
DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC
INFORMATION UPDATED ON JULY 13, 2021 AT 19:00 HRS LOCAL TIME.
NEW CASES REPORTED: 3,074
SOURCE: https://www.gob.mx/salud/
CONFIRMED CASES: 2,593,574
NEW DEATHS REPORTED: 89
CONFIRMED DEATHS: 235,058
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INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.
National rate 43.56
0 to 10.0 (9 states)
40.1 to 50 (2 states)
10.1 to 20 (5 states)
50.1 to 60 (1 states)
20.1 to 30 (4 states)
60.1 to 70 (0 states)
30.1 to 40 (5 states)
>70 (6 states)
Elaborated by Prodensa with information from the Health Ministry of Mexico
PANDEMIC’S SITUATION IN THE WORLD • As of July 12, 2021, globally there have been reported confirmed 186,638,285 cases (397,892 new cases) of COVID-19 and 4,035,037 deaths (7,176 new deaths*). Lethal rate: 3%. • In the last 14 days, the number of new cases accounts for 3% (5,679,156) of the total of accumulated cases.
SOURCE: https://www.gob.mx/salud/
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TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF JULY 13
DEATH INCIDENTS IN POPULATION BY REGION AS OF JULY 13
SOURCE: https://www.gob.mx/salud/
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EHS
RECOMMENDATIONS PREVENTION STRATEGIES TO REDUCE TRANSMISSION OF SARS-COV-2 IN SCHOOLS
Schools will have a mixed population of both people who are fully vaccinated and people who are not fully vaccinated. Elementary schools primarily serve children under 12 years of age who are not eligible for the COVID-19 vaccine at this time. Other schools (e.g., middle schools, K-8 schools) may also have students who are not yet eligible for COVID-19 vaccination. Some schools (e.g., high schools) may have a low percentage of students and staff fully vaccinated despite vaccine eligibility. These variations require administrators to make decisions about COVID-19 prevention strategies in their schools to protect people who are not fully vaccinated. Together with local public health officials, school administrators should consider multiple factors when deciding about implementing layered prevention strategies against COVID-19. Since schools typically serve their surrounding communities, decisions should be based on the school population, families and students served, and their communities. The primary factors to consider include: • Level of community transmission of COVID-19. • COVID-19 vaccination coverage in the community and among students, teachers, and staff. • Use of a frequent SARS-CoV-2 screening testing program for students, teachers, and staff who are not fully vaccinated. Testing provides an important layer of prevention, particularly in areas with substantial to high community transmission levels. • COVID-19 outbreaks or increasing trends in the school or surrounding community. • Ages of children served by K-12 schools and the associated social and behavioral factors that may affect the risk of transmission and the feasibility of different prevention strategies.
DAVID ANTUNEZ Environmental, Health, and Safety Director.
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BASIC PROTECTIVE MEASURES AGAINST COVID-19
1 2 3 4 5 Wash your hands frequently with soap and water for 20 seconds.
When coughing or sneezing, cover your nose and mouth with a disposable tissue or use the inside corner of your arm.
Avoid shaking hands and kissing.
Keep your workspace clean and don't share personal items and utensils.
If you show symptoms of a cold or flu, go to a doctor. Do not self-medicate and inform your supervisor and Human Resources department.
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